Jones Lang LaSalle, Inc, just published the 2010 Chicago Skyline Review, its graphic report that highlights the downtown rental market. While vacancies in some key buildings are limited, including Willis Tower and several others, there is plenty of space available in prime locations.
Vacancy rates currently run at just under 15%, which is up 5% from a year ago, and rents have decreased about 25%. Three new office buildings joined the market in 2009, but no additional units are expected in the next several years. According to Jones Lang LaSalle, no significant influx of tenants is expected until at least 2011, since most employers want to see a much more stable economy before expanding operations or changing space. While this combination has building owners concerned about their maturing debt and building value. However, Jones Lang LaSalle managing director Bruce Miller projects that most lenders will extend terms before suing for foreclosure, and that more of these buildings will be marketed in the near future.Email This Post To a Friend.